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CAWAUTO
Level 1

PPP Forgiveness

When I received my PPP loan I created a long term liability account to register the deposit.  My loan was 100% forgiven on 10/13/20.  I have made a journal entry dated 10/13/20 debiting the liability and crediting payroll expenses to eliminate them from my P&L.   It was only used for payroll, didn't need to track other expenses. Is this an acceptable way to enter the forgiven loan?  It affected my balance sheet by switching the liability to equity.  Is that where it should end up?  Desktop Pro version.

Solved
Best answer February 07, 2021

Best Answers
john-pero
Community Champion

PPP Forgiveness

What you did was incorrect.

 

Even considering the initial irs guidance that the ppp expenditures were not tax deductible they still were part of valid expense reported to everyone else.

 

But the rules changed. Your ppp expenses are fully deductible as if you used different money. The forgiveness is now Free money, so you record forgiveness as Non Taxable Income

View solution in original post

6 Comments 6
john-pero
Community Champion

PPP Forgiveness

What you did was incorrect.

 

Even considering the initial irs guidance that the ppp expenditures were not tax deductible they still were part of valid expense reported to everyone else.

 

But the rules changed. Your ppp expenses are fully deductible as if you used different money. The forgiveness is now Free money, so you record forgiveness as Non Taxable Income

View solution in original post

catucker01
Level 1

PPP Forgiveness

Has Intuit developed a QuickBooks Capital online forgiveness application?

ReymondO
QuickBooks Team

PPP Forgiveness

Good day, @catucker01.

 

Let me share some details about the PPP loan forgiveness application.

 

As of now, Intuit is still working on a process to support the application for Paycheck Protection Program loan forgiveness. 

 

However, you can reach out to our Intuit Support Team to verify this concern and request an application. Just check out their phone number listed in this article: What is QuickBooks Capital article.

 

You can also stay up-to-date with the latest news by visiting our PPP loan forgiveness webpage. Just click the Register Now button to sign up for email notifications.

 

In the meantime, you'll want to make sure you're gathering all of your supporting documents/information. This is proof that you complied with the directions of the SBA. Please check these links for more details:

 

 

I'm just a reply away if you have other questions with the QuickBooks. Just add the details of your concerns in this thread and I'll help you out. Have a good one.

MargauxInDenver
Level 4

PPP Forgiveness

Most people only need to submit the one page application and they do not need to submit any proof of how they spent it. The average loan is covered by this forgiveness. 

mennbooks
Level 2

PPP Forgiveness

How do I submit my SBA form 3508S to Cross River Bank? There is no information when I go to my payroll site and ppp section. I am running out of time. My loan was deposited into my business account on May 7, 2020. I need information asap. I have used the loan for only allowed categories, and qualify for loan forgiveness. But, Quickbooks is causing me to be late on submission of the form due to not providing any information.

 

I am quite frustrated with QuickBooks at this stage,and regret using as a portal for this ppp loan.

 

Wendy Menninger

Menninger Books Inc

MariaSoledadG
QuickBooks Team

PPP Forgiveness

I wish I could make it better, mennbooks.

 

QuickBooks will only assist you with your PPP Loan application by providing information on reports. If you're applying for a loan, you may need various pieces of information over 12 months. You can find most of this information from your Payroll Details and Summary reports. You can submit your loan application outside QuickBooks to an approved SBA Paycheck Protection Program lender. To guide you on what you'll have to do, read this article for additional information: Review SBA and Treasury Documents on PPP Loan Forgiveness.

 

I've included these articles so you'll have an additional reference:

Fill me in if you have any other concerns with your SBA form. Don't forget, we're always right here to further assist you.

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